CONTRACTORS SEEK EXPLANATION
Firms unable to explain situation to staff as they’ve yet to receive official notice from govt
CONTRACTORS in the construction of the Mass Rapid Transit Line 2 (MRT2) underground works want an immediate explanation on their position in the project.
This followed the decision by the government to re-tender the project’s underground work for unfinished work through an international open tender.
It is learnt that the termination of the contract that was granted to MMC Gamuda KVMRT (T) Sdn Bhd (MMC Gamuda) will affect more than 600 companies from the project’s supply chain.
Mohamed Nazir Meraslam Sdn Bhd (MNM) project director Mohd Faiz Mohamad Nazir said he had yet to receive any official notice from MMC Gamuda or project owner MRT Corp.
He said he only knew of the government’s decision and the explanation from MMC Gamuda and MRT Corp through the media, adding that this made it difficult for companies to explain the situation to employees.
“Everyone is asking us about the situation and it is difficult to explain. This is because there is no official discussion or notification from the government. It has caused support contractors like us to be on hold.
“Work is ongoing as we have to comply with requirements set in our agreement. However, if the project is cancelled, the company will face loss of time, energy and money, together with the loss of qualified skilled workers.
“It is because every company involved in the project under MMC Gamuda needs to meet requirements, including sending our employees, from site workers to management, to training.”
Faiz said more than 100 employees of the company were involved in the project, focusing on utilities resettlement along the underground lane and MRT2 land, with a project value of about RM40 million.
MNM and several other support companies have faced problems with delayed payments from key firms.
“If the situation worsens, which affects our employees, the companies involved do not rule out the possibility of taking appropriate action,” Faiz said.
Zumatex Engineering Sdn Bhd project director Chung Yoo Hock said the decision on the underground project would have a major impact on its operations.
“If cancelled, it will affect highly skilled workers in this area. The company will also face a loss of about 40 per cent of our cost.
“We need to discuss again with the top management to recover lost costs for purchased materials, loss of manpower and so on.
“I urge the relevant parties to give a clearer explanation of their direction on the MRT2 project because we still have not received any official explanation,” he said, adding that despite facing difficulties and losses, the company continued to work.
Zumatex is involved in piping for MRT2, with a contract value of RM20 million and employs more than 60 people.